Xinhua News Agency, Tianjin, November 26th: The market value of the 80% market has not yet bottomed out. What happened to the bitcoin that was once a smash hit?
Xinhua News Agency reporter Mao Zhenhua
A year ago, Bitcoin was a crazy investment, and the price of a single bitcoin was as high as nearly $20,000. A year later, Bitcoin in the "Waterfall" market has touched $3,600, with a maximum drop of 82%. The investment market is even more bleak. What happened to Bitcoin just a year later? Where will the future go?
The price has fallen to 30% in ten days, and it has not really bottomed out yet.
This winter seems to be particularly cold for Bitcoin. The once-popular Bitcoin investment circle is now tasting the bitter taste of falling from a height.
“Is it worth bankrupt to lose 85% of assets? If it counts, I declare bankruptcy.” A bitcoin investor sighed on Weibo. Liu Peng, a senior investor in Tianjin, entered the currency circle in 2016. He invested RMB 40,000 and rolled into RMB 300,000. However, after many rounds of “coin disaster” in the second half of this year, the loss of profits has now been exhausted.
It is the latest round of "waterfall" market, so that once the bitcoin is back to the spotlight. Starting from November 14th. Bitcoin, which has been smashing for more than two months at $6,400, has suddenly plummeted and has not really bottomed out yet.
On the 14th, Bitcoin opened the flashback and hit the lowest point of the year of $5,400. On the 24th after ten days, the price of Bitcoin remained at $4,300, a drop of more than 32%. On the 25th, Bitcoin fell below the most important psychological barrier of $4,000 in the near future, and the so-called support level became increasingly blurred.
During the Summer Davos Forum held in Tianjin this year, analysts from Japan, the United States and other countries have judged that after the value revision, Bitcoin will be lingering for 4,000 to 6,000 US dollars for a long time. This judgment is based on miners mining (using computers) The process of producing bitcoin) costs. Today, the cost of mining is hard to support. Recently, a large number of bitcoin mining machines have been hot-selled on the Internet.
There are also unwilling investors who are starting to move. At present, there is no direct exchange for domestic transactions in Bitcoin, mainly for over-the-counter transactions and exchanges registered abroad. However, Xiao Lei, dean of the 500 Research Institute of Investment Research Institute, reminded that Bitcoin is in a “bear market” and there is no fundamental advantage to support the existing price.
The market value has evaporated 1.6 trillion yuan a year. Why did the huge reversal arise?
From the first published bitcoin exchange rate in 2009, the average exchange rate of 1 US dollar was 1309.03 bitcoins. By 2017, the price reached the highest point. In the past 8 years, the price has more than 20 million times.
Under the circumstance of crazy market sentiment, a group of “coin circles” walked behind the scenes to the stage, advocating and speculating high prices, and taking the opportunity to ship. A large number of “air coins” have emerged in the currency circle, and ICO (the first token issue) has speculated as a worthless virtual currency to quickly “harvest the leek”.
However, the higher the standing, the worse it will be. Including China, many countries around the world frequently warned of the rapid rise of virtual currency represented by bitcoin, and introduced policies to curb investment overheating.
On the one hand, the situation of market incremental capital running into the market has been curbed. On the other hand, the funds in the currency reserve have been repeatedly harvested by the “coin circle”, the bad exchanges, and the ICO project side, unable to continue to support the rise in the price of the currency, so that the bit The currency has continued to decline since the end of last year.
So why did Bitcoin crash on November 14th?
Guo Yuhang, the principal of the Chinese blockchain application research, analyzed that the most direct fuse is the hard-forked bitcoin cash (a kind of virtual currency that bitcoin forks out), and there is competition in the market, leading to some users. Panic selling. Xiao Lei also said that bitcoin cash forks caused staged calculations to fluctuate, making bitcoin holders worried that attacks on Bitcoin would be possible and risk-averse selling would intensify.
“There are serious bubbles in the current large blockchain projects, and practitioners continue to raise market expectations to unrealistic heights. However, after being repeatedly “faced” by reality, market confidence continues to be lost.” Guo Yuhang believes that this is bitcoin. The root cause of this downturn.
The bitcoin market is relatively small, and the global virtual currency market value is just an Internet listed giant. With the large amount of investors holding Bitcoin, it is easy to cause large fluctuations in the price of the currency. Statistics show that in the past year, the market value of Bitcoin has evaporated 1.6 trillion yuan from the highest point.
Xiao Lei said that the long-running bitcoin will encourage investors to make choices. Overall, the market is still fragile, Bitcoin itself does not generate profits, and holders can only expect prices to rise, so the price decline will bring about an accelerated sell-off effect, and the market outlook is not optimistic.
The return of value is still the bubble disillusionment, where will the future go?
After the plunge, will Bitcoin disappear from here? The industry is controversial.
Some people are still strong followers of Bitcoin, and they are mostly scattered. In their eyes, the total amount of Bitcoin is limited by 21 million pieces, showing the characteristics of safe-haven assets in the international partial turmoil. Some people call it "digital gold."
Xiao Lei said that the history of Bitcoin is relatively short, and it takes a long time to establish a property consensus. The consensus mechanism formed by the golden millennium cannot be compared.
At the end of last year, the Chicago Board Options Exchange and the Chicago Mercantile Exchange issued bitcoin futures. The industry expects large amounts of money from financial institutions to enter the market and support price increases, but it seems that participation is still limited.
The other part continues to bearish. Some people compare Bitcoin with the famous famous tulip bubble. There is a view that bitcoin has a day of demise soon after the "significant numerical calculations" by computer alone, and now the bubble is being punctured.
Guo Yuhang said that bitcoin does not have the basis for extinction in the short term, but with the continuous research and policy tightening of national regulatory authorities, the regulatory arbitrage space has further narrowed.
Despite the controversy over the survival of bitcoin, the industry has high hopes for blockchain technology. The blockchain was born at the same time as Bitcoin, initially as the underlying technology of Bitcoin. Li Lin, the founder of the fire coin, believes that as a low-level technology that points to the future, the blockchain and the real economy have great potential for integration, and there is much to be done in a wide range of economic and social fields such as notarization, arbitration, tax registration, and donation of love.
Not long ago, the Digital Financial Assets Research Center of the School of Economics and Management of Tsinghua University, which was donated by Bit China, was established. Wu Jihan, CEO of Bitcoin, said that the future blockchain technology will be more integrated with traditional financial regulators and traditional financial services, which will greatly improve financial efficiency.
“The blockchain is by no means equal to Bitcoin.” Guo Yuhang appealed that the blockchain industry should accurately explore the pain points, do a good job of landing, and achieve significant cost reduction and efficiency enhancement before it can become a new generation of information infrastructure.
0 comments:
Post a Comment